Stock futures lower after rally

October 21, 2008 8:10:45 AM PDT

Eyewitness News

NEW YORK --

Stock prices are lower in early trading. The Dow Jones Industrial Average is down 104 points in today's early going. The Nasdaq Composite Index is off 31 points and the Standard-and-Poor's 500 Stock Index is down 14 points.

Before the opening bell, the Federal Reserve announced that it will buy commercial paper from money market mutual funds. That's another effort aimed at battling the credit crunch. Lending rates between banks in both the U.S. and Europe have dropped to the lowest levels in a month, indicating that credit markets continue to improve.

Cleveland-based bank National City Corp. reported a bigger-than-expected third-quarter loss and said it will cut 4,000 jobs.

There's word that billionaire investor Kirk Kerkorian's investment firm has sold more than 7 million of its shares in Ford for a fraction of what was paid, cutting the stake in the automaker to just over 6 percent. Kerkorian has tried to leave his mark on Detroit-based automakers over the past decade. Tracinda Corp. says it now sees value elsewhere in industries like gambling, hotels and oil and gas.